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Originally Posted by fleury
I don't understand the optimism in the market since yesterday. Like others have said, the stock market can be irrational, but this has been ridiculous. Frankly, I need to make some money back, so I'm putting it out there - what leveraged ETFs are there for trading against the TSX or Dow? Seems like optimism based on the government policy approval, but it's so early to get in that it rose this much that I'm willing to bet it goes the other way by Friday.
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I think this bounce was a reaction to the overwhelming fear that took over the market for the last month. The TVIX went from $50 to $1000 in a month. BA was $90. That's going to drive some long attention under any circumstance. The market knows we're in for a brutal April with thousands of deaths and millions sick. But the selling was well over done. So I don't think this is the bottom either. But it might be.
If you want to short via an ETF Google short etf's and pick one. The most common ones I've seen are SDOW SDS and SQQQ. VXX TVIX and UVXY are other ETN'S reflecting fear via options market derivatives and they also usually move in an inverse relation to the equity market. Although it's really interesting to note that the VXX has moved up along with the markets over the last two days. Strange. Probably not a good long sign.
You need to take note of the weighting given the etf...1x's 2x's 3x's. And also note that holding these over time will diminish their value...Google etf decay if you're interested.